Xinhua Finance has published a report on ‘Credit Risks of China’s Real Estate Sector’ that identifies policy risk as the primary risk factor affecting the credit worthiness of the real estate industry.
The report discusses the status of China’s real estate developers, and examines both business and financial issues challenging the industry.
The report explains that China’s real estate sector has benefited from the nation’s strong economic growth and favorable government policy since the beginning of economic reforms.
But with the slowing of the economy and the tightening of credit, Xinhua Finance believes that the recent liquidity problems of the industry are the beginning of a process of unfolding credit risks.
These risks are associated with the nature of the industry and have accumulated over time.
Much, much more HERE.
Source: MarketWatch
You must log in to post a comment.